Entrepreneurship Initiative Approved Projects: South Carolina
PROJECT: Plastics Industries Assistance Project for Entrepreneurial Development
GRANTEE: South Carolina Manufacturing Extension Partnership (SCMEP)
Purpose: To provide intensive technical and business solution assistance to early stage companies within the plastics industry in the upstate South Carolina region and to establish a network of small plastics manufacturers in the demonstration region.
Funding:
| ARC: |
$134,264 |
| Other Federal: |
$0 |
| State: |
$0 |
| Local: |
$66,206 |
| Total: |
$200,470 |
Description: This project provides value added manufacturing assistance to the plastics industry by delivering technical and business solutions to early stage companies. During the grant period, SCEMP provided Plastics Program information to 41 companies. SCMEP performed Competitiveness Review™ assessments on 18 plastic manufacturers. Twenty (20) companies requested that SCMEP provide them with technical assistance and 4 companies assisted through this grant requested that SCMEP provide repeated project support. The impact that the grantee had on the bottom line of client companies was approximately $724,000 in reduced inventory, production, and labor costs. SCMEP is committed to continuing this program for at least four more years. Job retention is estimated to be an average of 50 jobs for 12 companies and job creation is estimated to be an average of 5 jobs for 12 companies. The employment retention/creation estimates are projected for a 2-year period after project completion.
PROJECT: South Carolina Entrepreneurship Revolving Loan Fund Assistance
GRANTEE: South Carolina Appalachian Council of Government
Purpose: To provide outreach to entrepreneurs in transitional counties to facilitate access to Appalachian Council of Governments RLF and other financing programs.
Funding:
| ARC: |
$75,000 |
| Other Federal: |
$0 |
| State: |
$0 |
| Local: |
$18,750 |
| Total: |
$93,750 |
Description: The grantee provided direct technical assistance and outreach to entrepreneurs in targeted counties throughout Appalachian South Carolina. Clients had priority access to $425,000 in Revolving Load Fund (RLF) support—funds that were leveraged by additional bank loans. Six business development seminars, attended by 84 persons, were held in the target region in partnership with the local Small Business Development Center. A new credit committee was formed for the loan fund that was better attuned to the needs of entrepreneurs in the target communities. An award-winning web site was developed to market services to potential customers. These activities resulted in 21 entrepreneurs receiving loans totaling $2.7M. These projects have helped create 178 jobs while retaining 210 jobs.
PROJECT: South Carolina Entrepreneurship Revolving Loan Fund Capitalization
GRANTEE: South Carolina Appalachian Council of Government
Purpose: To help stimulate the market for entrepreneurial ventures.
Funding:
| ARC: |
$425,000 |
| Other Federal: |
$0 |
| State: |
$0 |
| Local: |
$637,500 |
| Total: |
$1,062,500 |
Description: The grantee provides a pool of $425,000 in ARC loan funds to assist entrepreneurs from the four counties of Anderson, Cherokee, Oconee, and Pickens in cooperation with private lenders. The grantee will also provide outreach, technical assistance, and marketing in order to identify a pool of entrepreneurs whose business plans can be made bankable and to assist entrepreneurs from these four counties in developing accurate assessments of their business needs, realistic business plans, and workable loan applications to local financial institutions. Projected outcomes of the project include the creation of 60 new jobs.
PROJECT: South Carolina Entrepreneurship Revolving Loan Fund Recapitalization, Phase I
GRANTEE: South Carolina Appalachian Council of Governments
Purpose: To recapitalize the Entrepreneurial Revolving Loan Fund.
Funding:
| ARC: |
$750,000 |
| Other Federal: |
$0 |
| State: |
$0 |
| Local: |
$1,425,000 |
| Total: |
$2,175,000 |
Description: This proposal is for a second entrepreneurship RLF serving five of the six Appalachian South Carolina counties. The first entrepreneurship RLF was capitalized in 1998 to serve four counties. The proposal will provide a source of funds to encourage the transfer of new process and product technologies that increase productivity and create new start-up opportunities, business expansions, creating jobs and the opportunity for high-value, high-wage employment.
PROJECT: South Carolina Entrepreneurship Revolving Loan Fund Recapitalization, Phase II
GRANTEE: South Carolina Appalachian Council of Governments
Purpose: To recapitalize the Entrepreneurial Revolving Loan Fund.
Funding:
| ARC: |
$500,000 |
| Other Federal: |
$0 |
| State: |
$0 |
| Local: |
$1,000,000 |
| Total: |
$1,500,000 |
Description: The project provides resources to assist entrepreneurs in starting and expanding local businesses, creating jobs and strengthening local economies in the South Carolina counties of Anderson, Pickens, Cherokee, Oconee and Spartanburg. This is a recapitalization of the second Entrepreneurial Revolving Loan Fund grant originally capitalized in 2000 for $750,000. To date SCACOG has closed nine loans from this grant totaling $830,000. The loans have leveraged $4.3 million into the five counties.
PROJECT: South Carolina Export Consortium Initiative
GRANTEE: South Carolina Export Consortium (SCEC)
Purpose: To help small and medium-sized entrepreneurs and companies expand their business through international trade.
Funding:
| ARC: |
$107,533 |
| Other Federal: |
$0 |
| State: |
$0 |
| Local: |
$54,205 |
| Total: |
$161,738 |
Description: The South Carolina Export Consortium identified 25 companies with the capability and interest in developing international markets by surveying various business directories and databases. During the first half of the grant period, two students at Clemson University were utilized to work with the companies and conduct market research. The Consortium conducted market research for 25 companies and provided technical assistance to 9 companies. The grantee also organized 3 international trade seminars attended by 70 companies. To date, at least 3 companies have contracted with the Gold Key Service of the US Department of Commerce and 3 other companies are currently in discussions with export management companies that are introducing their products in places like Latin America, South Africa, and Europe. Other completed outcomes include a company increasing its exports to Germany from $22,000 to roughly $750,000. However, the grantee provides a cautionary note that export sales take time and that it was unlikely that many more direct export sales will take place in the first year of grant supported activities. With the recent downturn in the domestic economy, the grantee has seen a marked increase in the demand for its services by companies wishing to access international customers. This increased demand should aid in the sustainability of the program.
PROJECT: South Carolina Export Consortium Initiative, Phase II
GRANTEE: South Carolina Export Consortium (SCEC)
Purpose: To expand the scope of the small and medium enterprise export assistance program.
Funding:
| ARC: |
$118,454 |
| Other Federal: |
$0 |
| State: |
$0 |
| Local: |
$93,675 |
| Total: |
$212,129 |
Description: The grantee received funding from the ARC to assist small and medium enterprises (SMEs). This assistance was specifically designed to help manufacturers and service companies identify new market potential overseas and to increase their sales through international trade. The grantee recruited and hired graduate assistants at Clemson University and the University of South Carolina to work with companies and conduct market research. The Consortium worked with the South Carolina Department of Commerce and the US Export Assistance Centers to promote the trade show stipend offered through this grant. The grantee provided market research and in-depth technical assistance to 26 companies and provided 10 companies with a trade show stipend of up to $2,500 to be used primarily for exhibition fees.
Almost all of the Consortium's client companies are following up with the leads generated at the trade shows, and with the research conducted by the grantee. In fact, one client recently reported exports of $3.5 million to new markets researched by the SCEC. In 6 months, the SCEC will conduct a survey and submit a follow-up report to ARC on the level of international activity of its ARC clients. The only significant problem encountered was dissolution of the Upstate International Trade Association, once a prospective partner of the grantee.
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